That error can also sometimes mean that the needed .Net Framework and/or C++ runtime libraries are not installed. But adding the install directory to the path is a good start.
Since a Direct Connect is required, it will also be necessary to set the SDEHOME environment variable to the install directory.
Using batch scripts is the easiest way to get there:
set SDEHOME=D:\Esri\arc102admin64-rel2\arcsde
set PATH=%SDEHOME%\bin;%PATH%
set SDEUSER=tableowner
set SDEINSTANCE=sde:sqlserver:servername
set SDEDATABASE=databasename
sdelayer -o register -l viewname,geomcolumn -e na+ -t GEOMETRY -R srid_of_base_table -C objectid,USER
Do NOT use 'sdetable -o create_view' -- ALWAYS define the view with SQL (or the Toolbox tool), then register it afterwards with 'sdelayer -o register'. Be sure to use a sensible name ("V" does not qualify, though "somedescriptivename_v" would).
Note: It's still possible that a 10.2.2 client will not be able to connect to SQL-Server 2014.
- V